Item B: URA - West Broadway Preliminary Financing Plan

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Attachment C Proposed Downtown Urban Renewal Plan Amendments In order to finance in the selected West Broadway redevelopment approach, the City would have to amend the Downtown District urban renewal plan as soon as possible. There are two plan amendments needed: (1) increase maximum indebtedness and (2) extend the termination date. In addition, council may want to consider expanding the district boundaries. Substantial Plan Amendment Process: In order for the district to accomplish these changes, there will have to be a “substantial amendment” to the district’s plan. This process is determined by Oregon Statute and the district’s plan. Certain types of substantial amendments require a special City-wide notice. These substantial amendments include: Changes in the maximum indebtedness; and Expansion of the district boundaries by more than 1% The shortest possible time to complete the process for this type of special amendment is approxi- mately 100 days. The major steps involved in this type of amendment are: Eugene Redevelopment Advisory Committee may meet to discuss the proposed plan amendments and make a recommendation to the Urban Renewal Agency to proceed Urban Renewal Agency meets to initiate plan amendments Urban Renewal Agency submits plan amendments and report on the plan to taxing bodies affected by the district for review and comment Urban Renewal Agency submits the plan amendments and report to the Planning Commission for comment City sends out special City-wide notice Urban Renewal Agency meets to receive the revised plan and report on the plan (optional) City Council holds a public hearing on the plan amendment ordinance City Council meets to approve ordinance amending the plan Increase Maximum Indebtedness: Oregon Statutes require each urban renewal district that receives property taxes to include a “maximum indebtedness” limit in their urban renewal plans. The Downtown District amended its plan in 1998 to include a maximum indebtedness limit of $33 million. “Maximum indebtedness” is a required spending cap for all expenditures in the district beginning in 1998. “Maximum indebtedness” is not a legal debt limit. It is, instead, more like a spending limit. Certain expenditures of the district are included in the “maximum indebtedness” calcu- lation and certain expenditures are excluded. For instance, interest on debt is excluded from the calculation, but administrative expenses or cash payments for projects are included in the calculation.